P$8-22$ Valuing Preferred Stock $[$LO$1]$

E$-$Eyes.com just issued some new preferred stock. The issue will pay an annual dividend

of $$12$ in perpetuity, beginning $11$ years from now.

If the market requires a $9$ percent return on this investment, how much does a share of

preferred stock cost today?

Multiple Choice

$$59\mathrm{.}14$

$$56\mathrm{.}32$

$$51\mathrm{.}67$

$$133\mathrm{.}33$

$$53\mathrm{.}51$